3 high yield dividends for your retirement portfolio

Yesterday a speech by deputy Reserve Bank of Australia governor Guy Debelle and the release of the minutes from the central bank’s latest cash rate meeting once again reaffirmed the market’s belief that rates are on hold until 2019. This is bad news for income investors that use the interest from term deposits or high interest savings accounts as a source of income. But the good news is that with an average dividend yield of approximately 4%, the Australian share market is here to save the day. Three high yield dividend shares that I would have in a retirement portfolio…

To keep reading, enter your email address or login below.

Enter your email below for FREE access to this article and all the content on the site. Also receive Take Stock, The Motley Fool's unique email on what's really happening with the share market. You may unsubscribe any time.

Yesterday a speech by deputy Reserve Bank of Australia governor Guy Debelle and the release of the minutes from the central bank’s latest cash rate meeting once again reaffirmed the market’s belief that rates are on hold until 2019.

This is bad news for income investors that use the interest from term deposits or high interest savings accounts as a source of income.

But the good news is that with an average dividend yield of approximately 4%, the Australian share market is here to save the day.

Three high yield dividend shares that I would have in a retirement portfolio are listed below. Here’s why I like them:

Demand for storage services has been growing thanks partly to population growth and baby boomer’s downsizing. National Storage aims to capture this demand through its large network of facilities and a development pipeline which includes 11 new developments and several new expansion projects. This year the company plans to pay a distribution of between 9.6 cents and 10 cents per share in FY 2018, which equates to a forward yield of around 6%.

I think Sydney Airport will be a big winner from the tourism boom that Australia continues to experience. As the main gateway into Australia I believe the airport operator will not only see a rise in passengers through its gates, but also demand for its retail and car park facilities. This could put Sydney Airport in a position to grow its dividend at a solid and consistent rate for many years to come. At present Sydney Airport’s shares offer a trailing 4.9% yield.

Westpac and the rest of the banking sector have come under pressure in recent weeks due largely to the Royal Commission. I believe this has left Westpac’s shares trading at a very attractive price which offers a compelling risk/reward for investors. This could make it well worth considering the banking giant if you do not already have meaningful exposure to the banks. Westpac’s shares currently provide a trailing fully franked 6.3% dividend and go ex-dividend for its interim dividend on Thursday May 17.

Financial year 2018 is here and The Motley Fool's dividend detective Andrew Page has revealed his must buy dividend share to grow your wealth in 2018.

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings Limited. The Motley Fool Australia has recommended National Storage REIT. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.